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Scoff at striking fast-food workers' demands for $15 an hour all you'd like, but one chain is already paying that relatively high minimum wage.

Is it a boutique burger joint in Michigan or Oregon that serves up $5 sandwiches? Nope. It's a tiny little outfit that calls itself McDonald's (MCD -0.15%), and it still turns a tidy profit in high-wage countries around the globe despite paying workers almost double what it pays American staffers.

The Atlantic reports that not only does McDonald's pay its Australian workers the equivalent of $14.50 an hour -- or double the U.S. minimum wage -- but Australia's Fair Work Commission just hammered out a deal between the company and its employees that guarantees workers up to a 15% raise by 2017. That's in a country where most McDonald's workers are already making more than the minimum to begin with.

That should confirm the fears of Americans already cautious about what a Big Mac would cost if worker wages increased, right? After all, that stack of beef patties, sauce, cheese, lettuce, onions, pickles and bread costs more than $1 extra in Western Europe, where McDonald's has to pay workers in France a $12 minimum wage, according to The New York Times.

In truth, McDonald's only wishes its fortunes were as great in the U.S. as they are in Europe. It earns far more revenue there than it does here, despite wages in Europe accounting for roughly 45% of the cost of its food, compared with 25% to 35% in the U.S. In Australia, meanwhile, customers are paying 6 cents to 70 cents extra per Big Mac.

So how does McDonald's survive in such high-wage environments? Much like in the U.S., it plays the game. In Australia, minimum wage for 16-year-old workers is only $8, which gives McDonald's incentive to higher younger workers. It also squeezes more productivity out of workers and does away with little redundancies like cashiers, who are replaced in certain instances by touchscreens.

I like the idea of a lower minimum wage for those ages 16-17, at least in the fast food industry or retail, as long as we leave the rest of our child labor laws intact to protect companies from over-using youth workers.

I'm sure there is a downside to the idea, but the kids I work with can't find jobs anymore because they have to compete with adults to get jobs at McDonalds. And my kids want jobs, badly.

It's Australia....things are more expensive there than here. For example, lets look at Games Workshop, the company that produces models for Warhammer Fantasy and 40,000.....

Here in the US a box of Necron Warriors (the army I play) sells for $36.25. However, in Australia, that very same box that costs me $36.25 costs the Australian hobbyist $55.00.

I don't know what Necron Warriors are or where they come from but the issue of higher prices in Australia is apparently an ongoing complaint by Australians. Doing the "maths" on your toys I get an equivalent price of $46, ie $36.26 ų .92 X 1.17 = $46.10 as the price to compare to the $55. I don't know why Australians would pay more (other than exchange differences) when I order pet meds from Pet Shed in Australia and pay less than I would in the US.

I like the idea of a lower minimum wage for those ages 16-17, at least in the fast food industry or retail, as long as we leave the rest of our child labor laws intact to protect companies from over-using youth workers.

I'm sure there is a downside to the idea, but the kids I work with can't find jobs anymore because they have to compete with adults to get jobs at McDonalds. And my kids want jobs, badly.

McDonald's doesn't have to pay $15/hr to charge a dollar more for a Big Mac. A trip to Williamsburg will disabuse you of the belief in a relationship between wages and prices.

I like the idea of a lower minimum wage for those ages 16-17, at least in the fast food industry or retail, as long as we leave the rest of our child labor laws intact to protect companies from over-using youth workers.

I'm sure there is a downside to the idea, but the kids I work with can't find jobs anymore because they have to compete with adults to get jobs at McDonalds. And my kids want jobs, badly.

That is true in most areas with high unemployment. Teenagers are having problems finding jobs. It was the same when I was in high school. But I kept looking and found my first job and it was not fast food.

One problem is those under 18 are not allowed to do some tasks inside the restaurant due to safety laws. I know one chain that would not hire anyone under 18 unless they absolutely had to, due to the fact they had a meat slicer for roast beef.

It's Australia....things are more expensive there than here. For example, lets look at Games Workshop, the company that produces models for Warhammer Fantasy and 40,000.....

Here in the US a box of Necron Warriors (the army I play) sells for $36.25. However, in Australia, that very same box that costs me $36.25 costs the Australian hobbyist $55.00.

So, Australians have a higher cost of nerddom? :p

Originally Posted by noonwitch

I like the idea of a lower minimum wage for those ages 16-17, at least in the fast food industry or retail, as long as we leave the rest of our child labor laws intact to protect companies from over-using youth workers.

I'm sure there is a downside to the idea, but the kids I work with can't find jobs anymore because they have to compete with adults to get jobs at McDonalds. And my kids want jobs, badly.

So do adults. Child labor laws began as a means of contracting the labor force in order to drive up wages. That's why unions agitated for them. Creating a minimum wage exemption for teens ensures fewer jobs for adults and job losses for teens who reach the minimum age threshold. Of course, not having the exemption hurts all workers, as it inflates the cost of labor. If you want jobs for your kids, reduce the burdens imposed on employers by government, to include hidden taxes that mandate income transfers from employers to employees.